Combine high shelf availability with low operational costs!

Challenges in retail

In retail, shelf availability is one of the most important sales drivers. In grocery retail, as much as 4 % of annual revenue is lost due to stock-outs. In specialty retail, the situation is estimated to be even worse. In both cases, problems in store ordering and demand forecasting is the main factor causing poor shelf availability. The difficulties are accentuated during promotions and seasons.

In addition to stock-outs, problems in store ordering and demand forecasting also cause high obsolescence costs. Spoilage costs of fresh goods and mark-down costs of seasonal products or products with limited life-cycles have a significant negative impact on retail profitability.

Retail profitability is also affected by ordering and handling costs in the retail outlets. The cost impact is notable – studies maintain that more than half of retail supply chain costs originate in the retail outlets. Furthermore, as store staff typically divides its time between customer service and the ordering, receiving, and shelving of goods, time spent on ordering and product handling is time away from sales and customer service.

RELEX helps retailers improve their material flows!

With the aid of RELEX’s software tools, our customers have managed to significantly improve store replenishment. Among other things, our customers have benefited from:

• Shelf availability improvements of several percentage points, which have translated into increased sales,
• Increased automation of store ordering – up to 98 % of orders being generated automatically, which has freed up a notable amount of time in the retail outlets,
• Reduced handling costs in the retail outlets and the whole supply chain through implementation efficient replenishment frequencies and replenishment quantities,
• Increased accuracy of demand forecasts also in challenging situations, such as during important seasons.

The RELEX Processor software provides excellent support for automated store replenishment.

Read more about the RELEX Processor software on RELEX’s products site or request a presentation on how RELEX Processor benefits retailers.

If you are a retailer interested in developing your store replenishment but lacking information on the attainable benefits and required investments, the RELEX X-Ray analysis is for you.
Read more about the RELEX X-Ray analysis on RELEX’s services site or request a presentation on what RELEX X-Ray offers to retailers.